Indicators which can be used to measure the effectiveness of a strategic plan for information systems in the tourism, hospitality or events management

As Buhalis (2003) suggested, strategic management is composed by four stages, which are ‘where are we now’, ‘where do we want to go’, ‘how do we get there’, and ‘how do we know we got there’ in turn. ‘Setting of indicators is critical at each stage, in order to enable organisations to assess developments in the external environment, assess competitor moves and react effectively’. [Buhalis 2003, pp49] Basically, indicators are set in order to evaluate the effectiveness of a strategic plan, and let us know if ‘we got there’.

Indicators are set according to the requirements of the organisation, or the goal of the strategic management plan. For instance, as mentioned in the previous article- ‘ICT Infrastructure Plan for Melbourne Airport’, Frame developed an enterprise service provider (ESP) framework to satisfy the airport’s requirement that to consolidate ICT services across tenants and airlines in order to reduce the cost of operating. [IDG Communications 2009] In terms of this case, one of the indicators which can be utilised to measure the effectiveness of ESP should be a goal level of operating expense after the implementation of such strategy. If the actual operating expense exceeded the goal level, the strategy would be lack of effectiveness; otherwise, it would be effective.

Additionally, customers and employees’ satisfaction is another necessary indicator which needs to be used in the evaluation. The approach of survey could be applied. The feedback would help the organisation to assess the new information system and improve it if necessary.

Generally, a successful plan should contain SMART goals- which are specific, measurable, attainable, realistic, and timely, as well as clear indicators, which can be used to measure the effectiveness in order to help the organisation react effectively. [Nikitina n.d] On the other hand, it should not contain any goals against SMART, which would make it difficult to set indicators in order to evaluate the effectiveness.

References:

Buhalis D., 2003, Strategic management and competitive advantage, eTourism, Pearson Education, Malaysia

IDG Communications, 2009, The Frame Group Develops ICT Infrastructure Plan for Melbourne Airport, viewed 9 Nov 2009, http://www.computerworld.com.au/article/323507/frame_group_develops_ict_infrastructure_plan_melbourne_airport

Nikitina, n.d, Smart goal setting, viewed 10 Nov 2009, http://www.goal-setting-guide.com/smart-goals.html